Thursday, December 21, 2006

Land Rent Crackdown

Defaulted land rents due to the Ministry of Lands will now be collected by the Kenya Revenue Authority . Previously KRA has dabbled in collections of local rates for the Nairobi and Mombasa cities but will now collect defaulted annual ground rents/rates due with penalties, for defaulters after each January 31, clearly spelt out as follows:

- July 2005 to date: 12% p.a. or 1% p.m.
- Jan 2001 to Jun 2005: 24% p.a. of the outstanding rent
- Jan 1996 to June 2000: 12% of annual rent
- Prior to 1995: 50% of annual rent

Payment can be made through KCB NBK and Co-op bank branches.

4 comments:

Anonymous said...

A single collection agency is far better than the current set-up.

The KRA needs to increase collection points. It sucks to think we have to line up to make payments!

Furthermore, we have to be indemnified against employee fraud (fake receipts, etc).

Anonymous said...

Its great,people holding onto prime property in the city that they cant develop or pay rates for.
will have to sell/develop it.

Anonymous said...

A single collection agency would be far better!

Anonymous said...

Good people, please help me out.
There is something I don't get. KRA is collecting land rent and City council is collecting land rates. Is an owner of a piece of land in Nairobi municipality supposed to pay both or only land rates? I have bought a piece of land in Embakasi and the previous owner only paid land rates. Will I be hit with a penalty for unpaid land rent?

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